The Divvy Dad Portfolio (DDP) surpassed the $1,000 dividend milestone in June when accounting for dividends from my index funds as well as DGI stocks, with slightly over $200 in dividend income from my dedicated DGI investments.
Unfortunately, July cannot hold a candle to those results from June as it is one of my quieter months based on forward dividend income projections. Only April and October are forecast to be lower, with the difference being the payout from Disney in July.
July 2018 Dividend Income Summary
The DDP received $108.75 in dividends in July, and while I don’t like to add positions to my portfolio based on their payout month, next year will see a small boost from the recent addition of “the monthly dividend company“.
Similar to the June dividend income report, I will be unable to calculate my YoY increase as my limited holdings prior to building the DDP did not have any payouts in July. That means I have another HUGE, or UNREAL YoY increase. =)
The July dividend income is as follows:
July 2018 Purchases and Forward Dividends
While July may have been a quiet month in terms of dividends, it was quite the opposite in terms of investing new capital. There was $3981.60 in new capital invested during July, with an additional $1703.45 invested after selling off some stock in an old Roth IRA.
The new capital resulted in an additional $189.56 in forward dividend income.
As a quick recap of the July purchases:
Following on my June purchase of Starbucks, I added an additional 20 shares with the price hovering approximately $1.50/share below the initial buy. The 20 shares will add $28.80 in forward dividend income.
While I wasn’t able to take advantage of the price below $50/share, I was still happy with this purchase.
Adding to my AFLAC position had been on my radar for awhile as it was underweight in my portfolio. The 11 additional shares @ $43.00 will add $35.36 in forward dividend income.
Similar to AFLAC, I had been wanting to add more to Johnson & Johnson and missed an opportunity to do so in the low $120’s. However, even at the $125.50 purchase price I believe it is still a fair value. The additional 8 shares will add $28.80 in forward dividend income.
Feel free to read more about that trio of purchases.
The next purchase was in the Vanguard High Dividend Yield ETF. In the June update I had talked about a potential change to my automated purchase of the Vanguard Total Stock Market Index, and after further consideration I did decide to change course.
I revised my automated deposit to go into the money market fund, and then I logged into my Vanguard account and made a manual purchase of VYM. The additional 6 shares will add $14.76 in forward dividend income.
In the spirit of change, as my taxable holding of VTSAX reaches long-term capital gains I am going to transition that over to VYM as well. My rationale for that is because I already own a substantial amount of VTSAX in my tax-advantaged accounts (remember, I have been an index fund investor for many years) and I want to maximize my passive income in my taxable account.
I wrapped up the month of July with a purchase of Realty Income Corporation.
While this purchase was not made with new capital, I decided to sell a position that I had been holding in an old Roth IRA to finally dip my toe into the REIT sector. Realty Income has been on my list of REITs that I want to buy once my pension rollover completes, and honestly I did not want to continue waiting for that to process to start a position in O.
The 31 shares will add $81.84 in forward dividend income.
While July may have been a slow month in terms of dividend payouts, it was quite busy with multiple purchases being made that increased my forward dividend income by nearly 6.0%.
The July dividends did allow me to surpass a milestone though, as I have now earned more in dividend income than I did in all of 2017. You can see a summary of the monthly income below:
As you can see, prior to establishing my DGI portfolio there were only a couple of payouts annually with the three dividend paying stocks that I have owned for years. The new portfolio is filling in those gaps nicely, and will begin to ramp things up quite nicely.
One of my 2018 goals is to earn $2,500 in dividend income.
At first glance it does not look too promising given that we only have five months remaining in the year and I am not even half-way to my goal. However, now that my portfolio is established and I will benefit from upcoming payouts for all positions, I have a forecast of a little over $1,500 in dividends remaining.
That would still leave me a little short–in large part because I had expected to have my pension rollover completed in July, and I set a goal to reach $500 in dividend income from the REITs that I plan to buy.
However, rather than dwell on what I cannot change, I am challenging myself to continue adding new capital to my portfolio to bridge that gap and achieve this goal.
Overall I feel as though July was a great month between receiving that huge YoY increase and adding nearly $4,000 in new capital.
How was your month of July?
What purchase did you make that you’re most pleased with?